PSE Circular for Brokers No. 588-99

March 25, 1999 PSE CIRCULAR FOR BROKERS NO. 588-99 March 24, 1999 PHILIPPINE STOCK EXCHANGE Pse Centre, Exchange Road Pasig, Metro Manila Attention: Raquel R . Angeles Assistant, Disclosure Department RE : Music Corporation SEC Reg. No. AS092-000589 Disclosure Statement 990324 Gentlemen : We refer to your fax of even date in connection with the 24 March 1999 The Manila Times news article captioned "Unidentified investor offers to buy Music's internet unit," written by one Alex B. Reyes of Bloomberg, which we understand also appeared on the Bloomberg wire service. cdll We confirm the accuracy of the news article, in Particular, that MUSIC has received a written offer to invest in and acquire a percentage of its music.com website which values the entirely of the music.com business at US$50.0 million. The offer is under study in conjunction with MUSIC's plans to raise capital for music.com We noticed however that the headline is inaccurate to the extent that it gives the impression that the investor has offered to acquire the entirety of the business. In addition, while the article accurately states that projected revenue for the year 2002 is $200 million, it does not state that accumulated losses through 2002 is projected at US$ 41 million. The foregoing information was made available to the Exchange last 22 March 1999, when we furnished you a copy of the "Analyst Briefing" package which was presented to market analysts at a briefing held in the afternoon of the same-day, particularly on the page entitled "Status today" relating to music.com near the end of the briefing package. If you should have any questions, please call us. Very truly yours, (SGD.) JIMMY S. SOO